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More Than You Bargained For: Seniority of Assumed Employees Still Relevant Even Where Purchaser is Granted Broad Release

In Antchipalovskaia v. Guestlogix Inc., 2022 ONCA 454, the Court of Appeal for Ontario recently held that where an employee is terminated and re-hired in the course of proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) and any claims associated with that termination are released, the employee’s pre-CCAA service period remains relevant in determining their entitlements if they are subsequently terminated again.

Please see the following article on our Restructuring Roundup blog for a summary of this important decision and takeaways for purchasers of insolvent businesses.

CCAA proceeding Ontario Court of Appeal employee termination



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